Overtime Pay as a Percentage of Total Pay
Measures the proportion of total payroll that is spent on overtime. A high percentage might indicate over-reliance on overtime, which can be more costly than regular hours and might indicate staffing or scheduling issues.
(Total Overtime Pay / Total Payroll) x 100
If the total overtime pay in a month is $10,000 and the total payroll is $100,000, the percentage would be 10%.